Where to get a loan £2000 with virtually no credit.

gtg93

Hi,

I'm hoping someone can help me find a company that will give me a loan of £2000 (over 2years preferably but I could manage it over 1) so I can buy a car and first part of my insurance.

I'm 18 Years old (by about 5months) and working full time on £990 a month (after taxes). I've not got much of a credit history due to my age, although I do have a capital one credit card which i got just to build a credit rating and I've had this for nearly 4months (spending around £100 a month and paying it off before getting charged interest).

I've tried my bank (Santander) but they've turned me down giving the reason "You've not got a long enough credit history" (although after getting a credit report they haven't run a credit check on me). I've looked around the web for companies and checked them out on these forums aswell but can't seem to find a reputable one that will accept someone with low credit history and when I do they ask for me to be 21+.

Lending from a relative is out of the question as none of them have this sort of money lying around and using them as a guarantor is out of the question due to bad credit history.

Also, before people say it I know saving for it myself would be the best idea but I could really do with the car ASAP and saving would take a few months, although if there's no other option I'll just have to wait it out.

Any help is greatly appreciated,
Thanks!

jonjamie1970

Well you said dont say it but, save up for it for a "few months" rather than having years of debt and interest payments to worry about.
Honestly it is the best thing you could ever do for yourself !

Devils-Advocate_3

Wait it out a few months. It won't kill you. And trust me, the feeling of being able to purchase it without using credit will be great!

Good idea to build up some credit rating with the capital one card (that's what it's there for) just continue to ensure you pay off the balance in FULL every month!

Good luck

KingElvis

I would imagine at the moment you have 0.0% chance of getting the loan you want.

I would try finding your local credit union and saving with them, then in a few months time, they may be able to help you.

RichGold

Devils-Advocate wrote: »

Wait it out a few months. It won't kill you.

He's 18. It will kill him.
I remember vaguely what being 18 was like, everything had to happen now rather than waiting.

You'd be far better off, and start off your financial life on a good footing, if you waited and saved up a little. You wont be missing much and you'll feel better buying with cash.

paddyrg

I would not reccommend spanking a couple of grand on a motor aged 18, but it's your life. Try zopa.com where they have a 'young' category and some pretty adventurous/reckless lenders :-)

drbesty

You won't get motor insurance at 18 for less than £2000, you'll need alot more, I think you might have to stick to your bike for now

LovelyLeeds

drbesty wrote: »

You won't get motor insurance at 18 for less than £2000, you'll need alot more, I think you might have to stick to your bike for now

Yes he will if he is a named driver for a year or so. What's the big hurry in building up your own NCD when you're only 18? My daughter's car is in my name and she is a named driver, she's 18 and the cost is £850 a year. Once she's on her feet and earning then she'll get insurance in her own name and with a couple of years driving history behind her, hopefully not so much of a sting.
Back to the OP, you come across as financially aware, which is great, definitely save up for a few months if you can.

bouncydog1

LovelyLeeds wrote: »

My daughter's car is in my name and she is a named driver, she's 18 and the cost is £850 a year. .

Really? Hope your daughter doesn't have an accident, because if she does then you are possibly (as we don't know the full details) going to be in deep do do for fronting her insurance policy.

In case you are not aware of what fronting means, it equates to insurance fraud, which means that you are with-holding some of the material facts from insurers to avoid paying the correct premium. In this case, the vehicle is "your daughter's car" and she is the main user. Even if the vehicle is registered in your name and you say you are the main user, if there is any suggestion (as you have made above) that it is her car, you are fronting.

In the event of an accident, even though insurers will have to pay a third party claim, they are entitled to cancel the policy (which will have to be declared to future insurers) and come after you for their outlay. You could also find yourself facing criminal proceedings for fraud. Just be aware that any accidents involving young drivers, driving a vehicle insured by a parent, are very, very thoroughly investigated.

cajef

LovelyLeeds wrote: »

My daughter's car is in my name and she is a named driver, she's 18 and the cost is £850 a year.

Well that is a clear case of 'fronting'.

http://news.bbc.co.uk/1/hi/programmes/moneybox/7052569.stm

Saints2011

Dont forget there is three credit bureaus Experian, Equifax & Call Credit.

You will need more history to get a prime loan.